On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 504,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.Record the entry on the date of payment for the cash dividend. Record the entry to close the dividend account to retained earnings.

Introduction: Journals: Recording of a business transactions in a chronological order. First step…

Answered: On May 20, the board of directors for…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section: Chapter Questions

Problem 3AP

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On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 504,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.
Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.
Record the entry on the date of payment for the cash dividend.
- Record the entry to close the dividend account to retained earnings.

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